Fed Day End of QE3 Market Update and Stock Scan Oct 29

Bycjrosen

As expected, the Federal Reserve announced an end to its QE3 stimulus program and stocks reacted immediately with a knee-jerk sell-off lower.

Let’s update our levels and note the top trending stocks so far in today’s special session:

Continue watching price action closely in the high volatility period after today’s Federal Reserve announcement.

The key level will be the 1,975 index in the S&P 500 and a break above the 1,983 level could trigger an impulsive bull flag breakout.

Otherwise the market is a bearish play under 1,975.  The Fed Day aftermath makes today unique.

Sector Breadth (before the Fed) revealed a slightly bullish picture:

Our strongest sector today is Energy which is rebounding after a large sell-off, and Health Care with Discretionary and Technology (sectors) are the second tier leaders for the day.

Materials and Utilities so far are the weakest sectors of the session.

We have potential bullish trend continuation plays in the following stocks:

Newfield Exploration (NFX), Petsmart (PETM), Medtronic (MDT), and Occidental Petroleum (OXY).

Potential downtrending candidates exist in stocks showing relative weakness today:

Garmin (GRMN), Facebook (FB), Thermo Fisher Scientific (TMO), and Gilead Sciences (GILD).

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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